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Looking for different opinions

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  • 18-09-2008 10:25am
    #1
    Magic Pips
    Registered Users Posts: 621 ✭✭✭


    This is one of my 4/5 forum subjects i always check out for a good aul read.... i'd like to hear some different opinions on my home situation...


    I live here:

    [HTML]http://www.myhome.ie/residential/search/brochure/13--st-samsons-court-balgriffin-dublin-co&-city/PPANK352231[/HTML]

    The above isn't my house but is close to exactly what mine is (except i'm a mid terrace). My mortgage is a 5 yr fixed (till aprox july 2011) and currently stands at around 305k (bought for 340k) repayments of 1350 (after tax relief).

    Now i'm working abroad for the foreseable future, on small contracts - so i'm left with 3 options afaik:

    1) Rent out two rooms as an owner occupier (as this will be my primary residence); Hope to get around 900€ p/month for the two rooms

    2) Rent out the entire house for a year, then become liable for capital gains... is this calculated on the value from the time the property is rented, or the purchase price? Hope to get around 1400 p/month

    3) Sell and hope to take a profit and invest wisely (easier said than done!)


    Please feel free to critise any figures etc, i'm open to all comments!

    Cheers
    pips


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    #2
    El Stuntman
    Closed Accounts Posts: 4,720 ✭✭✭El Stuntman


    Magic Pips wrote: »
    This is one of my 4/5 forum subjects i always check out for a good aul read.... i'd like to hear some different opinions on my home situation...


    I live here:

    [HTML]http://www.myhome.ie/residential/search/brochure/13--st-samsons-court-balgriffin-dublin-co&-city/PPANK352231[/HTML]

    The above isn't my house but is close to exactly what mine is (except i'm a mid terrace). My mortgage is a 5 yr fixed (till aprox july 2011) and currently stands at around 305k (bought for 340k) repayments of 1350 (after tax relief).

    Now i'm working abroad for the foreseable future, on small contracts - so i'm left with 3 options afaik:

    1) Rent out two rooms as an owner occupier (as this will be my primary residence); Hope to get around 900€ p/month for the two rooms

    2) Rent out the entire house for a year, then become liable for capital gains... is this calculated on the value from the time the property is rented, or the purchase price? Hope to get around 1400 p/month

    3) Sell and hope to take a profit and invest wisely (easier said than done!)


    Please feel free to critise any figures etc, i'm open to all comments!

    Cheers
    pips

    first off, option (3) should read 'sell and realise a loss'

    if you bought for 340k in July '06 (right at the very top of the bubble), your house is probably saleable for at least 25\30% less right now. This is the reality - you are in negative equity.


  • Options
    #3
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,279 Mod ✭✭✭✭The_Conductor


    No. 1 - I think you are being hopelessly optimistic about getting 450 per month per room. As you won't be physically living in the house- you're not an owner occuppier (and there is a unit looking at a number of dubious declarations at the moment).

    No. 2 - If you rent out the entire house you loose your TRS on the mortgage as its not your PPR & as you're not resident in the country the tenants would have to pay witholding tax on your behalf to the taxman (unless you remain tax resident here- in which case you have to pay Irish tax on your foreign earnings too).

    No. 3 - If you sell-depending on how long you've owned it- there could be stamp duty implications (and you will also have exhausted your First Time Buyer status for the future).

    Its messy- regardless of what you decide to do.


  • Options
    #4
    Magic Pips
    Registered Users Posts: 621 ✭✭✭Magic Pips


    smccarrick wrote: »
    No. 1 - I think you are being hopelessly optimistic about getting 450 per month per room. As you won't be physically living in the house- you're not an owner occuppier (and there is a unit looking at a number of dubious declarations at the moment).

    What constitutes an owner occuppier? I've no wish to be in anyway 'dubious', i'll be abroad from now until dec 12th - and am paid from ireland.

    No. 2 - If you rent out the entire house you loose your TRS on the mortgage as its not your PPR & as you're not resident in the country the tenants would have to pay witholding tax on your behalf to the taxman (unless you remain tax resident here- in which case you have to pay Irish tax on your foreign earnings too).

    Yep, no problem loosing the tax relief, mortgage would be 1450 then - As far as i know i'll always be paid from Ireland
    No. 3 - If you sell-depending on how long you've owned it- there could be stamp duty implications (and you will also have exhausted your First Time Buyer status for the future).

    Stamp duty implications on my next purchase, or in relation to this house?
    Its messy- regardless of what you decide to do.

    Tell me about it, this isn't exactly a fun time to be in debt either! :confused:

    ah well! :o


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